The Securities and Exchange Board of India (SEBI) has issued a new circular to simplify compliance rules for stock brokers and improve ease of doing business. The circular was released on March 23, 2026, and the new rules will come into effect from April 17, 2026.
Relief in Reporting Requirements
SEBI has relaxed certain reporting requirements related to bank accounts and demat accounts of stock brokers. Earlier, brokers were required to report all their bank and demat accounts to stock exchanges. Now, brokers who are also banks or primary dealers will only need to report those bank accounts that are used for stock broking activities.
In addition, SEBI has removed or reduced the requirement of reporting certain demat accounts, especially those used for non-broking activities.
Changes in Demat Account Rules
SEBI has clarified that all demat accounts must still be properly named and tagged. However, this rule will not apply to brokers who are also primary dealers for demat accounts used only for non-broking purposes.
Once a demat account is named, it cannot be changed later. Any violation of naming or reporting rules may lead to penalties.
Timelines for Reporting
Stock brokers will now have to inform stock exchanges about:
- Opening of bank accounts within 7 working days
- Closure of bank accounts within 7 working days
Depositories will also share details of demat accounts with stock exchanges regularly.
Objective of the Circular
SEBI said that these changes are aimed at improving regulatory efficiency and reducing unnecessary compliance burden on brokers. The move is also expected to make the reporting system more practical and aligned with business needs.
Instructions to Exchanges and Depositories
Stock exchanges and depositories have been asked to:
- Inform all members about the new rules
- Update their systems and regulations
- Publish the circular on their websites
Legal Basis
The circular has been issued under the powers given to SEBI under the SEBI Act, 1992 and the Depositories Act, 1996 to protect investor interests and regulate the securities market.
